SCS Farmland investment scheme
We’ve been made aware of many Unregulated Collective Investment Schemes (UCIS) turning sour in recent years. SCS Farmland is yet another example, leaving investors with nothing to show for their investment but mounting management fees and little hope of recovering their money.
A high-risk investment with a low barrier to entry
SCS Farmland was an investment opportunity marketed as being suitable for both Self-Invested Personal Pension (SIPP) and Small Self-Administered Scheme (SSAS) members. The project centred around cultivated land in the Province of Santiago del Estero Argentina. It was managed by a company called Food Water and Energy SA (FWE), with investments handled by a separate limited company called Power Court Services.
The scheme had a relatively low barrier to entry with a minimum investment of just £12,000. For this comparatively small sum, investors were promised a return of 66% on funds invested for 5 years, and a staggering 160% if they opted for 10 years. It was marketed by a number of unregulated agents, including Worldwide Investments based in Cambridge.
Unfortunately for those who invested, what seemed like an excellent investment opportunity quickly turned into a nightmare. Investors never received a legal title to the land, nor the shares that were said to represent a stake in the land.
To make matters worse, a number of those who invested in SCS Farmland were also advised to invest in Green Oil Plantations Ltd–another high-risk, unregulated scheme. This left them open to multiple annual charges and fees from their SIPP provider, even though no income had been received. Both of these investments are now valued by some SIPP providers at nil.
A substantial number of investments in SCS Farmland were held through SIPP provider Berkeley Burke SIPP Administration Limited, which was declared as being in default by the Financial Services Compensation Scheme (FSCS) on 18 September 2019.
If you invested in SCS Farmland through Berkeley Burke or any other SIPP provider you may have been the victim of faulty pension advice. High-risk, unregulated schemes like this should never have been marketed at ordinary investors, but with a minimum investment of £12,000, it seems clear this was their intended market.
Our team at Beat the Banks have a long history of successfully dealing with compensation cases against failed investment schemes. Call us on 0800 193 1234 for a no-obligation chat about your case and how we can help you.